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CALABASAS, Calif. - NeOnc Technologies Holdings, Inc. (NASDAQ:NTHI), a clinical-stage biotech company with a current market capitalization of $113.3 million, announced Thursday that its board of directors has unanimously approved a strategic transaction with Quazar Investment, marking the first of five required milestones toward closing a planned $50 million equity investment.
The approval, granted on June 30, advances the non-binding term sheet under which Quazar intends to lead a capital formation round priced at $25 per share - significantly above the current trading price of $5.96. According to the company’s statement, 70% of the proceeds would be allocated to acquiring NeOnc common stock, while 30% would fund clinical trials and infrastructure development across the UAE and broader Middle East and North Africa (MENA) region.
To complete the transaction, NeOnc must fulfill four additional conditions within 120 days, including forming NuroMENA and NuroCure entities in Abu Dhabi, executing a sub-license agreement for its NEO100 and NEO212 drug candidates, finalizing offering documents, and approving a comprehensive two-year business plan. InvestingPro data reveals the company’s current financial health score is rated as WEAK, with short-term obligations exceeding liquid assets, indicating the strategic importance of this capital raise.
"We are excited to report tangible progress in advancing our strategic partnership with Quazar Investment," said Amir Heshmatpour, Executive Chairman & President of NeOnc Technologies Holdings, Inc., in the press release.
NeOnc Technologies is a clinical-stage biotechnology company developing treatments for brain and central nervous system cancers. Its NEO100 and NEO212 therapeutics are currently in Phase II human clinical trials with FDA Fast-Track designation.
The closing remains subject to satisfying all remaining conditions and successfully completing the capital formation process. The information in this article is based on a company press release statement.
In other recent news, NeOnc Technologies Holdings Inc. has signed a non-binding term sheet with Quazar Investment for a $50 million equity investment aimed at expanding its clinical trials in the Middle East and North Africa region. This agreement involves the creation of NuroMENA Holdings Ltd, a wholly owned subsidiary, which will oversee NuroCure, an Abu Dhabi-based entity responsible for managing clinical trials. The investment, priced at $25 per share, allocates 70% of funds to acquiring NeOnc common stock and 30% to clinical trials and infrastructure development. The partnership will leverage Cleveland Clinic Abu Dhabi’s trial infrastructure, and NuroCure will initiate trials for NeOnc’s drug candidates, NEO100 and NEO212, targeting aggressive brain cancers. Additionally, NeOnc has appointed Dr. Josh Neman as its Chief Clinical Officer to oversee clinical development, including the advanced Phase 2a trial of NEO100. Dr. Neman’s expertise in cancer neuroscience is expected to enhance NeOnc’s research collaborations and clinical strategy. The company is also exploring AI and quantum computing to advance its drug delivery platform. NeOnc holds 176 patents worldwide, underscoring its focus on developing precision therapies for central nervous system cancers.
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